G.E. Is Finally Exorcising Financial Demons From Jack Welch Era - The New York Times

General Electric's Restructuring

General Electric (GE) is divesting its financial arm, GE Capital, to return to its industrial roots after years of financial challenges stemming from the Jack Welch era. This significant restructuring involves selling off billions of dollars in assets.

Key Actions

• Selling most of its commercial real estate assets for $26.5 billion.
• Planning to offload approximately $200 billion in GE Capital assets.
• Fully divesting its publicly traded consumer credit arm, Synchrony Financial, in a $65 billion deal.

This move is strategically timed, given the current market conditions and the high demand for financial assets. The aim is to refocus GE's financial operations solely on supporting its core businesses in healthcare, energy, and aviation.

Impact and Significance

The restructuring represents a significant departure from previous financial strategies and aims to improve GE's long-term financial health and stability.